REPORT OF THE COMMITTEE ON APPROPRIATIONS TOGETHER WITH ADDITIONAL VIEWS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85B01152R001001350041-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 7
• Document Creation Date: December 20, 2016
• Document Release Date: January 28, 2008
• Sequence Number: 41
• Publication Date: November 2, 1983
• Content Type: REPORT

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FROM: (Name, org. symbol, Agency/Post)
5041-102 OPTIONAL FORM 41 (Rev. 7-76)
Prsscribsd by GSA
FPMR (41 CFR) 101-11.206
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 Approved For Release 2008/01/28: CIA-RDP85BO1152RO01001350041-5
98TH CONGRESS
1st Session
DEPARTMENT OF DEFENSE APPROPRIATION
BILL, 1984 (vD/A r?c
D1Q UV
09
if 0L E:
OcrosER 20, 1983.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
U.S. GOVERNMENT PRINTING OFFICE
26-2250 WASHINGTON : 1983
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REPORT
OF THE
COMMITTEE ON APPROPRIATIONS
together with
ADDITIONAL VIEWS
[To accompany H.R. 4185]
 Approved
identifying the necessary procurement funding. Moreover, at a
time when nearly 20,000 vehicles are being leased, the average Air
Force vehicle mileage is declining by 10 percent, and the Army
average vehicle mileage'is declining by 25 percent.
The Department of Defense is directed not to lease vehicles if
outright purchase is more economical. Simply because O&M funds
are available does not relieve the Department of Defense of the re-
sponsibility of pursuing the most economical method of acquisition.
In fact, the availability of O&M funds should have no involvement
whatsoever in the decision as to whether vehicles should be leased
or purchased.
Through compliance with the Department of Defense's own lease
vs. purchase economic analyses, the Committee believes $4.7 mil-
lion in savings can be deleted by discontinuing uneconomical leas-
ing from the operation and maintenance accounts.
LEGISLATIVE LIAISON LIMITATION
The fiscal year 1984 budget request for legislative liaison activi-
ties is $10 million. Since the budget, as submitted, includes no re-
quest for pay raise, and since virtually all of this request is for ci-
vilian or military personnel costs, the fiscal year 1984 request rep-
resents real growth of approximately 10 percent. The Committee
has traditionally included a ceiling on the amount that could be
spent for legislative liaison activities in order to insure that the De-
partment of Defense complies with the prohibition against lobbying
the Congress. As a result, a reduction of $800,000 is recommended
to the request. However, the limitation included in the bill is being
set at $9.5 million in order to allow sufficient room in the ceiling
for civilian and military pay raises if later submitted by the Presi-
dent. The Committee continues to believe that appropriations liai-
son personnel should be co-located with the day-to-day operation of
the various military services and OSD budget shops. No effort is to
be undertaken to integrate (organizationally or physically) the ap-
propriation liaison staffs with the less specialized and non-finan-
cially oriented legislative liaison staffs.
PUBLIC AFFAIRS LIMITATION
DOD is requesting an increase of $2.6 million, or 8 percent above
the fiscal year 1983 limitation of $35.5 million for public affairs ac-
tivities. The Committee is recommending that the increase be lim-
ited to inflation which will permit deletion of $1.8 million in sav-
ings. In addition, the Committee is setting the annual limitation
for public affairs activities at $34.2 million in order to allow for ci-
vilian and military pay raises which the Congress may approve
later if a supplemental is submitted by the President.
PERSONNEL AND INDUSTRIAL SECURITY PROGRAMS
According to a recently completed Committee investigative
report, thousands of DOD civilian and industry employees and
members of the Armed Forces have been granted security clear-
ances even when questions of loyalty, reliability and trustworthi-
ness were unresolved or when there existed more than sufficient
Energizer could have saved ap-
first year alone. The Committee
it project would have been more
lent than canceling. For another
s Engineering Support Agency
month payback in fuel savings
sigh ceilinged buildings.
he purpose of improving energy
and install energy conservation
stems of facilities operated and
Defense. Any energy conserva-
es manufacture, and reliable re-
the actual operation of such de-
first-year energy cost savings at
.nstallation cost of such devices.
?ans the difference between the
energy system for a 12-month
nation devices as a part of the
perating such energy system for
h energy conservation devices as
[TENANCE SAVINGS
ment of Defense is requesting
ntenance projects. This is an in-
1983 levels.
ustry has recovered somewhat
ie economic downturn, the De-
:o experience significant savings
construction projects due to the
ie military services, percentage
Below the Government estimate
estimate for the Navy, 28 per-
ad 12 percent below for the Air
the real property maintenance
1984 could be accomplished for
n is currently budgeted.
ecommending a reduction of
percent, to reflect this overall
the Department of Defense to
igs to apply toward reducing its
vide for a 15 percent increase
Idition, the Committee is con-
sufficient progress in reducing
$26,100,000 for that purpose,
RATIVE VEHICLES
160,924 administrative vehicles
ilitary services have acknowl-
ehicles when they should buy
enance dollars are easily avail-
igh the bureaucratic process of
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 70
derogatory information available to warrant clearance denial. Indi-
viduals with documentable arrest and conviction records for safe
burglary, kidnapping, child molestation, attempted robbery, grand
theft, forgery and serious psychiatric disorders have been granted
security clearances in spite of adverse information and competent
advice to the contrary. The problem is particularly acute in the
Navy. In the preceding 26 years prior to fiscal year 1981, the Navy
denied a security clearance to a civilian employee in only one in-
stance. Of 7,200 clearance actions reviewed by the Navy Civilian
Personnel Center (NCPC) in fiscal year 1982, not a single security
clearance was denied or revoked.
The Committee is also concerned that requests by DOD compo-
nents for security clearances are rarely, if ever, subject to rigorous
scrutiny through any formally established validation processes, a
phenomenon promoting an unbridled growth in security clearance
requests.
In the collateral clearance field the policy for requesting clear-
ances is so permissive that, for all' practical purposes, there exists
no effective control over the number of individuals granted clear-
ances. In some DOD components, officials are authorized as many
clearances at the Secret and Top Secret level as are believed
needed without recourse to independent validation, justification or
oversight. Collateral "carve-out" contracts pertain to sensitive, ad-
vanced DOD projects most generally applicable to U.S. research
and development (R&D) technology, operations or procurements.
Security cognizance is maintained by the DOD component award-
ing the contract rather than by the Defense Investigative Service
(DIS). Collateral "carve-outs", usually administered at the Secret
level, are generally placed under "special access required" restric-
tions, and impose unique, sometimes peculiar, physical security
measures. Program managers and contracting authorities believe,
rightly or wrongly, their programs demand increased protection
than afforded under the Defense Industrial Security Program
(DISP).
Unlike the majority of sensitive compartmented information
(SCI) contracts whose existence are known to DIS, collateral
"carve-outs" are exceedingly difficult to detect, and when detected,
are generally discovered by accident during the course of normal
DIS security inspections. In 1981, DOD officials estimated there
were approximately 900 collateral "carve-outs". Other sources be-
lieve the number may actually be in the thousands.
Security, most often cited as the basis for establishment of
"carve-out" contracts, is not the only, or even perhaps the primary,
consideration. "Carve-outs" are often sole source awards allowing
program managers to escape the routine procurement bureaucracy,
provide for a certain ease in contract administration and presum-
ably reduce time expended in the procurement process. It is a
.
strange anomaly that the creation of a "carve-out" contract may be.
accomplished by procurement activities who fail to consult with se_
curity officials during the procurement process. There is no obliga-
tion for them to do so. There is near unanimity among industry as
well as some DOD officials that "carve-outs" afford less, sometimes
considerably less, security than that available within the standard
industrial security framework. The classification of most. "carve-
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 Approved For Release 2008/01/28: CIA-RDP85BOl 152RO01 001350041-5
o warrant clearance denial. Indi-
and conviction records for safe
tation, attempted robbery, grand
.tric disorders have been granted
verse information and competent
lem is particularly acute in the
)rior to fiscal year 1981, the Navy
civilian employee in only one in-
,s reviewed by the Navy Civilian
it year 1982, not a single security
ied that requests by DOD compo-
rarely, if ever, subject to rigorous
,stablished validation processes, a
idled growth in security clearance
Id the policy for requesting clear-
all practical purposes, there exists
mber of individuals granted clear-
s, officials are authorized as many
Top Secret level as are believed
pendent validation, justification or
contracts pertain to sensitive, ad-
,erally applicable to U.S. research
)'logy, operations or procurements.
ied by the DOD component award-
y the Defense Investigative Service
usually administered at the Secret
er "special access required" restric-
netimes peculiar, physical security
and contracting authorities believe,
rams demand increased protection
ense Industrial Security Program
isitive compartmented information
ce are known to DIS, collateral
Lfficult to detect, and when detected,
:cident during the course of normal
.981, DOD officials estimated there
eral "carve-outs". Other sources be-
be in the thousands.
as the basis for establishment of
e only, or even perhaps the primary,
-e often sole source awards allowing
he routine procurement bureaucracy,
contract administration and presum-
n the procurement process. It is a
tion of a "carve-out" contract may be
activities who fail to consult with se-
curement process. There is no obliga-
is near unanimity among industry as
at "carve-outs" afford less, sometimes
n that available within the standard
k. The classification of most "carve-
(3) Direct the Navy to centralize its adjudication authority
based upon the successful centralization performed by both the
Army and the Air Force.
(4) Reduce the proliferation of programs which are excluded
from the central industrial security procedures; an immediate
review should be undertaken which will identify all collateral
"carve-outs and bring all such exceptions back into the cen-
tral industrial security procedures unless there is a specific
,case by case determination made by the Deputy Under Secre-
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out" contracts at the Secret level raises the question as to the le-
gitimacy of the "carve-outs" especially when the personnel investi-
gative standard for access is no greater than that required to
obtain a DOD building pass.
The value of today s investigative product is also questioned in
light of significant changes in investigative scope
the implementa-
June 1981, the Deputy Secretary of Defense approved P
tion In
tion of an interview-oriented background investigation (IBI) in lieu
of the standard BI. The new investigative concept, the basis of
which is the interview of the applicant, is strongly supported by
the Defense Investigative Service and other DOD officials who
state the IBI generates "quality" information in the most economi-
cal fashion. Nevertheless, the Office of Personnel Management
(OPM) believes the IBI fails to meet even the minimum investiga-
tive standard for competitive service civilian employees as pre-
scribed in Executive Order 10450. While DOD acquiesced to OPM
concerns with regard to competitive service civilian employees, the
IBI remains the minimum investigative standard for access to Top
Secret information for military and industrial personnel. There ap-
pears to be no rational basis for believing that less investigation
needs to be undertaken for granting Top Secret clearances to mili-
tary and industrial personnel (an IBI) than for civilian employees
(a BI).
The Committee believes that immediate action is required by the
Department of Defense to correct these longstanding and potential-
ly damaging deficiencies in personnel and industrial security. The
.Committee is therefore directing that the Secretary of Defense:
(1) Come to an agreement with the Director of Central Intel-
ligence and Director of the Office of Personnel Management as
to what constitutes an adequate and cost-effective background
investigation for military, civilian, and industry employees ob-
taining the various levels of security clearances.
(2) Review current policies to ensure that people with ques-
tionable backgrounds are not given clearances which permit
access to sensitive information; if necessary, remove the Gener-
al Counsel to an advisory role to prevent continuation of the
current situation whereby that office grants clearances to indi-
viduals with questionable backgrounds to avoid the potential
for increasing its own workload resulting from lawsuits from
individuals denied clearance for access to sensitive informa-
tion.
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tary of Defense for Policy that overriding national security
considerations dictate otherwise.
(5) Review industrial security practices to ensure that unnec-
essarily elaborate and costly physical security is not being pro-
vided while insufficient attention is being paid to personnel se-
curity.
(6) Review the need to implement a quota system or industri-
al funding for the Defense Investigative Service to stabilize the
case workload.
(7) Place some controls over approving requirements for se-
curity clearances to prevent the continued proliferation of un-
necessary access to sensitive classified material.
The Committee expects periodic reports on implementation of
the above guidance in a timely fashion.
In a letter dated April 25, 1983, the Secretary of Defense notified
the military Services and the various defense agencies that he was
reporting to OMB that "the estimates for audio visual products are
to be held to the fiscal year 1982 levels." Since the amount includ-
ed in the fiscal year 1984 budget request represents a substantial
increase over the level to which the Secretary will hold military
spending for audio visual services, the Committee is recommending
a reduction of $10 million to bring the budget request into line
with the Secretary's stated spending goals and the fiscal year 1984
authorization.
MILITARY SEALIFr COMMAND CARGO RATES
As a result of increased competition on the North Atlantic route,
the Military Sealift Command cargo rates. for the six month period
beginning April 1, 1983 dropped nearly 50 percent. The Committee
applauds this great reduction and believes that substantial savings
will continue to accrue. Consequently, a reduction totalling $25
million is recommended to reflect the savings which were not pro-
jected in the original fiscal year 1984 budget request.
FEDERAL EMPLOYEES COMPENSATION FUND
The Department of Defense has budgeted a 33 percent increase
in reimbursement to the Department of Labor for costs associated
with workman's compensation payments for Department of De-
fense employees. The fiscal year 1984 request of $286,300,000 is an
increase of $68,700,000 over the fiscal year 1983 level. Each year,
the Committee has included a General Provision limiting increases
in reimbursement to the Department of Labor to inflation only.
The Committee took this action because of reports that manage-
ment improvements were required in the Department of Labor but
that little incentive existed since the costs were passed from the
Department of Labor to each individual executive branch agency.
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